I simply cannot shell out this loan. Really should I file for individual bankruptcy?

Q. I cosigned on a bank loan for my son 7 years back and however, l cannot spend it nor can he. It went downhill just after my divorce. Should really I file for personal bankruptcy?

— Very poor

A. We’re sorry to hear about your divorce.

As you know, as a cosigner on the mortgage, you are on the hook for the loan, just like your son is.

At times, individual bankruptcy is the ideal choice to enable people today get started about and get again on their ft monetarily, explained Karra Kingston, a individual bankruptcy attorney in Union City.

She reported many people who have auto financial loans that they can not shell out think that they can basically flip the vehicle back again in and the lease or finance business will not hold them liable. Sad to say, that is not the circumstance, she reported.

“When men and women voluntarily repossess the car, the auto firm will test and promote the car or truck,” Kingston reported. “However, any amount of money that does not protect your remarkable bank loan can still be gathered on.”

Most of the time, voluntary repossessions are massive loans and most people today simply cannot afford to pay for to repay that debt, she reported. If you have a voluntary repossession or owe a large fantastic quantity to a dealership, then it could be ideal to contemplate filing for bankruptcy, she reported.

“Many New Jersey bankruptcy lawyers deliver free consultations that you can acquire edge of to see if that would be your very best route,” she explained. “Bankruptcy is a device to assist people today begin over and get back on their ft.”

E mail your inquiries to [email protected].

Karin Cost Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Observe NJMoneyHelp on Twitter @NJMoneyHelp. Uncover NJMoneyHelp on Fb. Indication up for NJMoneyHelp.com’s weekly e-newsletter.